Earnings Call: Q1 2025

May 16, 2025

Summary

Pro forma Q1 results improved sharply, while reported figures reflected large one-time gains in both periods. The split, renewable-energy expansion and infrastructure investment shape the growth and capital-allocation agenda.

Good morning to you all. I want to thank you for your company today. My name is Carolina Arango. I am in charge of investor relationships for Grupo Argos, and since today, I will be supporting this call. This conference will be focused on presenting the financial results of Grupo Argos for the first quarter of 2025. On this page, we have Jorge Mario Velásquez, Alejandro Piedrahita, Rafael Olivella, then the director teams for Odinsa, for the real estate business, and for Pactia. I want to remember that on our website, we have placed all the information regarding this quarter, together with the presentation that will be following during this teleconference. To download it, you can access the menu, then Financial Information, and then Reports. In addition, we are transmitting this conference via X Spaces. I want to invite you to move on to slide number 3 so we can start our meeting, for which I want to give the word to Jorge Mario Velásquez, President of Grupo Argos. Jorge, you might be muted. Good morning to you all. Thank you for being with us today and being with us for this conference, where we will be presenting the first quarter results for 2025, where we will be seeing how our businesses proved a solid dynamic that has been reflected in some very positive figures that we will be sharing with you all. To start this call, we wanted to make an update respecting the advancements of the split agreement in order to end those cross-participations between Grupo Argos and Grupo Sura. In this operation, that will allow to dispose in an organized manner and guaranteeing also an equal treatment for all the shareholders of the company that Grupo Sura has in Grupo Argos and those that Grupo Argos and Cementos Argos have in Grupo Sura. The transaction contemplates the distribution of more than COP 10.8 trillion in Grupo Argos shares between the shareholders of Grupo Argos and answers to the strategic focus of the company in the construction material businesses and infrastructure businesses. About the advancements in the project, it is right to mention the compliance of several milestones that have allowed to advance up to date. First, the 21st of March, we received an authorization from bond tenants of Grupo Argos, Grupo Sura, and simultaneously, Cementos Argos. The 25th, 27th, and 28th of March, we made respectively the shareholders assemblies for the three companies, in which shareholders approved the split project. Finally, we advanced in the request authorization for the split in front of the Financial Superintendency of Colombia. We expect that the authorization process coming from the Superintendency will advance truthfully, allowing to perfect the split before the end of 2025. The end of this operation will place Grupo Argos in a better position in order to attract new investors, and also attract additional capital, strengthen its capacity to execute its strategy. Furthermore, this will imply that the company shareholders will receive at least 0.23 shares of Grupo Sura for every share that they have in Grupo Argos. On slide number 4, we could see how the investment portfolio has transformed for the organization in the last 12 months. Taking as reference the ledger values of our non-listed investments, such as Odinsa or the urban development business or Pactia, among others. From another side, the price of the shares in the stock exchange, such as Celsia, Cementos Argos, Grupo Sura, or as it was in this moment, Sociedad Portafolio, known as Nutresa. We see that in respect with the same quarter last year, meaning by this quarter, 21st quarter 2024, the organization's portfolio has valued to COP 3 trillion, reaching COP 22 trillion. This contribution is supported in the closure of strategic transaction and also in the proper performance of our businesses. The Grupo Argos portfolio today has experimented a significant transformation given its most recent transactions concentrated in infrastructure. It is a transit that will end with the specialization of 100% once the company stops being a shareholder of Grupo Sura. Before speaking about the consolidated and separated results of the company for the first quarter, it is important for us to stop for a minute in the non-recurring effects that have affected the performance of the organization for this period, as well as the necessary adjustments for the same quarter 2024, in order for the results can be compared, and will allow us to analyze the variation of the operational results of our business. For first quarter 2025, it is key to bear in mind the following adjustments in our consolidated financial results. First, the company recorded a profit of COP 2 trillion due to the sales of the shares that Cementos Argos kept in Summit Materials. This is an operation that was materialized the 11th of February this year. Second, we recorded associated expenses to the transaction of the split agreement that still have not yet a correspondent profit, given that its perfectioning is still pending, as we have previously announced. We expect that this transaction can be concreted before the end of this year. In addition, in these first months of 2025, we do not include the participation method for Grupo Sura in the results of Grupo Argos, given the advancements of the split project via absorption for this company. It is also important to remember the not recurring events that affected the results of the same period 2024. In the same quarter last year, the company recorded a profit of COP 5.3 trillion, product of the combination of the Argos USA assets and Summit Materials. In addition, we recorded a profit that came from the stock exchange of Grupo Nutresa that reached a figure of COP 1.4 trillion. From another side, we had an adjustment in the reasonable values for the Pavas and Barú land lots in February 2024 after the revision of the accounts assigned to the deferred tax that led to a cash deterioration or not cash, but an accounting deterioration close to COP 297 million in the revenues. Finally, the reclassification of the participation method for Grupo Sura as a discontinuous operation, given the split agreement, which implied that this result would be under the line of the financial results for this period. All the described operations are non-recurring, we need to consider in order to analyze the operational results. If these are part of the holding's core that continuously seeks to maximize the value of its portfolio, benefiting its shareholders via these types of operations. The last 12 months have been particularly relevant on this front and have allowed us to crop results of a disciplined and oriented strategy to value generation. In the consolidated results for the first quarter 2025, Grupo Argos recorded revenues for COP 2.9 trillion. This represents a growth of 7% compared to the same period, 2024. An EBITDA of COP 809 billion, a growth of 47% year-over-year and a profit of COP 2.2 trillion, that at its time is reflected in a net controlling profit of COP 1.2 trillion. These figures represent a drop compared to the same period last year, due to the effects of these non-recurring effects. Nevertheless, when we observe the pro forma financial results, we could see that revenues grew 3% year-over-year and the EBITDA grew 25%. The consolidated net profit was of COP 245 billion, with a growth of 236%, and a net controlling profit, a net controlling pro forma profit reached COP 113 billion. This is almost tripling the adjusted result of the same quarter last year. These positive results are mainly explained due to a better operational dynamic in contrast with the first quarter 2024 that was affected by the low hydrology due to an El Niño phenomenon. In addition, we want to highlight the growth in the concession segment that has been driven by the participation method of the private capital fund that was managed by Odinsa, from which this company is investor together with Macquarie Asset Management. Both effects will be described in more detail further on in this call. Speaking about separate financial results, the company recorded revenues for COP 1.4 trillion and EBITDA of COP 1.3 trillion and a net profit of COP 1.5 trillion. These figures are lower than what we saw in 2024 before we made the adjustment for those recurring events, more particularly due to the generated profit within the combination of the assets with Summit Materials in the first quarter last year. Nevertheless, as in the consolidated financial results, when we adjust and observe only the results derived from our recurring operations, we could see that the pro forma separate revenues for the first quarter were COP 271 billion, which represents a growth of 127% year-over-year. The EBITDA was COP 192 billion with a growth of 128%, and net profit was of COP 144 billion, which represents a 121% higher than the pro forma result that we saw in the same period last year. Now I want to invite you to move on and look at the results of our businesses, which start on slide number 9. Let's start by the results of the cement business. With the closure of the transaction of share sales that we at Cementos Argos had in Summit Materials, we want to offer an update of how this is being handled in terms of the resources being managed by the company. Today, 100% of that investment that it's equal to COP 2.9 billion are placed in titles with no mark-to-market risks. These investments are diversified by type of product, issuer, and geography with a focus of return maximization. The portfolio distribution and the selection of the resource administrators have been led by an investment committee that we've conformed by members of the board of Cementos Argos following a rigorous model aligned with best practices of corporate governance for the short-term management of resources while we define its definite strategic destination. Likewise, with Cementos Argos Board, we've started an exhaustive analysis in order to define the optimal destination of these resources within a broad range of possibilities that we allow to keep on tracing a story of growth and value generation as it's led us to become the largest investor in Colombia in the first economy of the world. As main shareholders of Cementos Argos, for Grupo Argos, the reinvestment of these resources is fundamental given that today they represent the most valuable asset that's being managed by this holding. In order to give some perspective about this COP 2.9 trillion from which Grupo Argos is beneficiary of 54%, represent close to 9,500 Grupo Argos share. Once we've ended the split up by absorption, which also will generate an economic benefit for the Grupo Argos shareholders. Because of this, we're working exhaustively with the administration and the board in order to ensure the best capital allocation in a process that has a strategic vision that does not discard any alternative that might be contemplated, both in its sector as in terms of geographic footprint. From another side, aligned with its growth strategic vision, Cementos Argos advances in the consolidation of an exporting platform for aggregates in the Caribbean with assets that offer key competitive advantages such as being close to the port, high-quality materials, enough reserves in order to supply the growing demand of some of the coastal markets in the U.S. That present a clear unbalance between demand and supply of the subject aggregates. Moving on to the financial results for the first quarter of this year, Cementos Argos recorded very consolidated revenues for COP 1.2 trillion and an adjusted EBITDA of COP 258 billion with a 21% margin. If this represents a small contraction compared with the same period last year, with the first quarter that was not favorable in certain geographies in terms of cement volume, this reflects the advancements in the operational efficiency and the company's resiliency, and also the positive impact of a series of efficiency programs that have been implemented for several years now in key regions. The comprehension of the EBITDA margin is explained from one side to the program stopped in the Piedras Azules plant in Quill. There's also a base effect given that in previous year we included over the EBITDA line an account that was correspondent to the recognition of a taxation claim in Panama. When we eliminate this extraordinary effect, the variation of the EBITDA between two periods, it's close to zero. From its side, the adjusted net profit reached COP 137 billion with an 8% growth year-after-year, excluding the extraordinary effects coming from the sale of Summit Materials' participation and adjustments related with the participation method, which allows a proper comparison with the current results without the United States operation. From an operational point of view, the cement and concrete volumes presented drops of 6% and 19% respectively as a result of a lower local demand. Nevertheless, something that highlighted was the advancement in profitability focus in our operations in Colombia, and the sound performance of the assets in the Dominican Republic, Honduras, and Puerto Rico that contributed to compensate the lower dynamics of other geographies. We want to also highlight that when we look at the monthly evolution, each month had a better behavior than the previous. The concrete volume reduction also updates to a model transformations, in Central America, more specifically in Panama, where the plants and fleets are operated by strategic allies while we keep the cement supply. The company keeps a disciplined operation, efficient operation with a robust financial position, which allows to keep on focusing on capturing opportunities in key markets and generating sustainable value for its shareholders, as it's been seen with the successful development of its spring program. Now, I want to invite you to move on to the results of the energy business, which is found on slide 11. Celsia started in 2025 with relevant news for the energy transition in the country. During the quarter, the company advanced in the construction of the Carreto project. It's the first wind plant in Colombia with an install capacity of 9.6 megawatts. This project, which is located in the municipality of Juan de Acosta in Atlántico, counts with aerogenerators close to 200 meters of height that will use the winds of the region in order to deliver clean energy to the national interconnected system in an area that has a different wind potential than Guajira. Likewise, we ended the setup of the first aerogenerator, and we're advancing in the installation of the second one. Once both these generators are working, they will be contributing 30 gigawatts hour per year, ratifying the commitment that Celsia Grupo Argos has in the diversification of the energy matrix through conventional and non-conventional energy sources. In addition, the company recently announced the acquisition of a portfolio that comprehends projects for 675 megawatts in between solar and wind plants that have been purchased from Mainstream Renewable Power. This portfolio includes projects that could allow Celsia to double its development pipeline. The most advanced of these ones is a park known as Andrómeda, with a capacity close to 100 megawatts. It's placed in the department of Sucre that already counts with an environmental license and will be connected to the Toluviejo substation that's owned by the Caoba platform, which is the co-investment transmission platform for Celsia. This integration represents a competitive advantage that is highly relevant, guaranteeing the availability of network connection, which is one of the main bottlenecks within the development of these types of renewable projects in the country. At the end of March, with the operational solar portfolio for Celsia reached 475 megawatts. Adding the installed capacities in platform Celsia, Energía, Laurel in Central America. In addition, the company counts today with close to 284 megawatts that are being constructed and 376 megawatts in early development stages, which will allow the organization to go over the 1 gigawatt of operational solar power for 2027, decisively advancing in its growth map in terms of clean energy growth. The company also advanced in its strategic objectives around the ENERSA program. It is an initiative that wants to generate value for all its shareholders within TOS Grupo Argos. In the debt reduction front, we were able to recover cash for more than COP 160 billion during the quarter, closing with a consolidated net debt of COP 5.7 trillion and keeping us a goal, reaching COP 3.85 trillion at the end of this exercise. The efficiency initiatives allowed recovering an EBITDA margin that is higher than 32%, and we identified 538 new actions that will lead into savings close to COP 165 billion during 2026. Parallelly, we advanced in the energy efficiency business transformation and Internet in independent companies as a previous step in order to attract businesses that will drive its growth. Finally, in the Peruvian platform, the company keeps conversations with international investors in order to sign commitments up to $300 million, which will strengthen its expansion under the asset management model. In the financial front, for the quarter, the consolidated revenues grew 6% and reached COP 1.45 trillion, while the EBITDA increased 45%, reaching COP 472 billion, recovering a 32.5% margin. Thanks mainly to a lower generation cost in respect with the Niño phenomenon in 2024. Like this also, the net profit for the quarter reached COP 108 billion, growing 264% year-after-year. From an operational point of view, Colombian generation reached 1,368 gigawatts power with a 42% growth, driven by a more favorable hydrology. In terms of commercialization, we delivered 967 gigawatts hour. In terms of the platforms, we want to highlight the growth in terms of solar generation for C2 Energía, which delivered 232 gigawatts hour, increasing its generation in 5%. The consolidation of Laurel with 136 photovoltaic systems and the appraisal of Caoba, which reached assets for COP 2.6 trillion and a quarter EBITDA that is close to COP 82 billion, are very important elements in terms of the growth of these investment platforms around non-conventional renewable energy platforms. Now, I want to invite you to move on, look at the Odinsa results found on slide number 13. Odinsa continues this year consolidating its evolution as an investment platform in road concessions and airport concessions together with Macquarie Asset Management. During this first quarter, it reported relevant advancements both in the operational plan as well as in the financial plan. In the road front, the alliance with the governance of Antioquia enabled, since March, delivering the main road exchange bridge for the José María Córdova Airport, which reaches an 80% of advancement. This construction started just one year ago, and this will improve the mobility of more than 40,000 vehicles that access this airport on a daily basis through a connection with Túnel de Oriente. While we keep working decisively in the other parts of the project. In the airport platform, the El Dorado International Airport was once again recognized as the best in South America by Skytrax. This is a distinction that also comes with the Platinum Award of Operational Excellency delivered by Cirium in 2025. This air terminal keeps consolidating as the main hub in terms of air connections in Latin America, even being over airports such as Mexico City and São Paulo, which reinforces its strategic importance and its need to broaden its capacity. Under this line, after delivering last October the feasibility for El Dorado Max project, which wants to broaden the capacity to 17 million passengers on a yearly basis with an investment that is close to COP 13 trillion. The granter, in this case, the National Infrastructure Agency, hired as a project evaluator, a consortium that is built by several expert companies in the area. In addition, we also had a successful public audience where we socialized the project in the last month of April. On this bet based on airport infrastructure for Colombia, we also have the private initiative of El Bayunca Airport that will be serving the cities of Cartagena, Barranquilla, and the Atlantic coast. Right now, this project is under feasibility evaluation. This project contemplates the construction of a new air terminal with an initial capacity of 15 million passengers and an estimated investment in COP 6 trillion, designed to attend the growing touristic potential of the Caribbean region. Strategically located between Cartagena and Barranquilla, this airport wants to become a key node for the national and international connectivity of the country. In terms of the financial results, Odinsa recorded consolidated revenues for COP 131 billion, from which COP 114 billion correspond to the participation method of the private capital fund, which reflects the appraisal of the different assets owned by the fund as the dividends decreed in the March assemblies. The consolidated EBITDA was placed in COP 109 billion, and the consolidated net profit reached COP 99 billion. Moving on to the operational results of the company that you can find on slide number 14. Road platform closed the quarter with an average daily traffic of 110,000 vehicles, which represents a growth of 3% compared with the same period last year. We want to highlight the increases in the average daily traffic for Pacífico 2 with a 10% increase, the Malla Vial del Meta with an 8%, Autopista del Café with a 3%. From its side, the traffic of Oriente Tunnel presented a slight drop of 2%, attributable to the execution works which its partial operations, such as the road exchange, should be translated in improvements of mobility and traffic traction in the short term. The airport platform, which figures are found on slide number 15. The total passenger airport during the quarter was 12.1 million passengers, from which 10.9 million corresponded to El Dorado Airport. This figure represents a slight drop of 3% compared with the first quarter 2024, explained mainly by the de-acceleration of domestic traffic. On the real estate business, the gross effective revenue for the quarter was COP 116 billion, with a 4% drop year-over-year, while the EBITDA was placed at COP 63 billion, which represents a drop of 5% compared with the same period, 2024. Nevertheless, when analyzing the behavior in terms of the same assets for the completed year, both the effective gross revenue as the operational net revenue, as well as the EBITDA, presented a growth of 4% compared with the previous year. During the quarter, we renewed contracts for 38,000 square meters of licensed area, and we signed new contracts for 16,000 square meters in addition. At the end of the period, the non-hotel portfolio occupation was at 91%, with a drop of 333 basis points compared with the same quarter previous year. By sectors, trade or commerce led the growth of the effective gross revenue with an increase of 10% year-after-year, followed by offices with an increase of 5%. In terms of commerce, the sales by square meter grew 7%, and the traffic in shopping malls increased 1% compared with the same period 2024. Moving on to the urban development business that is found on slide number 17. During this first quarter, 2025, we recorded negative figures. These are mainly explained by the anticipated provision of the land tax that should be recognized in the first day of the year, despite the payment not happening in this first date. The quarter revenues correspond to the dividends of Hotel Cala Blanca and perceived revenues due to contractual adjustment clauses in previous projects. In terms of the cash flow, this recorded revenues for COP 28 billion. Nevertheless, these drops and the perspectives for the year are highly positive, and we expect to communicate to the market new businesses that are right now in advanced stages, that will allow for the net cash flow of the year of 2025, will be equal or even higher than previous year. Now, I want to invite you to move on to slide number 19 and look at the evolution of the consolidated indebtedness of the company. In this area, with the cash entries coming from disinvestment in the U.S., the consolidated net debt of the company for February 2025 is negative. In other words, today the company has more cash than debt, which represents a clear sample of the strength and financial flexibility with which Grupo Argos counts with, for the execution of its future strategy. The separated net debt of Grupo Argos that is detailed on slide 21. Closed the quarter with COP 1.4 trillion. This represents an increase compared with the same quarter last year. That is mainly explained due to the use of the cash that was disbursed for the joint OPA for the shares of Grupo Nutresa that was thought within this transaction. Let us remember that with this transaction, the organization did not use indebtedness, but it used its available resources in terms of cash. Despite the increase of net debt due to the slower cash that I just explained, Grupo Argos keeps a net debt indicator over EBITDA that are a very healthy indicator, which gives a financial flexibility and allows the company to close the quarter with an indicator of a level of 2 times. Within the Grupo Argos commitment and its businesses, focused on generating value for all its groups of interests that want to celebrate during the quarter, El Dorado International Airport in concession by Odinsa, became the first Colombian infrastructure and the first airport in the country to obtain the Blue Dot Network certification. This is an initiative supported by OCDE and G7 in order to promote international sustainability standards, transparency and governance standards in order to attract investment long-term. This recognition positions this asset as a referent in terms of sustainable infrastructure in Latin America and allows accessing concessional financial mechanisms and blended finance and climate funds such as CTF and CIF, strengthening its leveraging capacity in terms of multilateral institutional investments. This is a milestone that ratifies the commitment of Grupo Argos with the infrastructure development allied with global strategies, and that's also specially relevant facing the expansion projects that are right now being structured. Before closing, we would like to highlight that in the new stage, where we're going to be simplifying and specializing in infrastructure after disinvestments of the cross participations with Grupo Sura, we see a very positive landscape, an organization that's placed in a great position in order to keep on following the profitable growth path. Proof of this strength is the recent confirmation during May of the triple A rating, the highest one in the local scale from BRC Ratings – S&P Global, both for Grupo Argos as issuer, as well as for its ordinary bond program. In addition, the rating company ratified BRC 1+ rating for its commercial papers, maximum level of debt for short-term debt. This also ratifies the structural strength of the company, the strategy under these types of investments, and the strength of these fundamentals that support its businesses. In its new specialization phase, Grupo Argos will do what it knows best, connect with its investors with unique and difficult-to-replicate assets in high-growth markets. Businesses where the company participates count with structural competitive advantages that offer a significant potential for value generation in the mid to long term. Cement, this mentions some indicators that the company is just leader in the Colombian market with a brand that competes in recognition with the most valued consumption goods of the country. Currently, this cement brand is the seventh most remembered brand within all the sectors. Besides Colombia, with a per capita cement consumption that's close to 250 kilograms per person a year, is well under the regional average. That's 300, but it's very under the global average of 500 kilograms per person a year. Here we could see a clear space for the structural growth of demand in our country. In energy, through Celsia, Grupo Argos operates the integrated energy private platform, the largest in Colombia, with more than 70% of its metrics coming from renewable sources. More than one gigawatt of physical capacity, having constructed a company with solar energy leadership in Colombia, with 300 megawatts, which will quadruple for 2027. The electricity per capita consumption in Colombia keeps being a fourth of the average of the OCDE countries, which represents a great opportunity for the expansion of the sector and for the accelerated energy transition. In concession, it does administer the airport with the largest traffic of passengers in Latin America, and counts with a private initiative dedicated for its expansion, and being actually one of the most important infrastructure projects in all the continent. Besides, it manages others of the terminal areas in the country and most important for the region. These are key to capture the growth of air traffic in a market that has more than 650 million people in Latin America. While the demand through air connectivity and the revenues for new airlines are more than promising for the investment requirements for air infrastructure. From its side, the real estate business will keep advancing in tourism projects in Barú and real estate projects in the city of Barranquilla and its metropolitan area. Two conurbations of the Colombian Caribbean with the best perspectives in order to keep within its expansions for the next years. These fundamentals that I just described, supported in the human talent in the way of seeing and executing its long-term projects, together with a disciplined management and strategic management of all our businesses, consolidates the position of Grupo Argos as a specialized platform with proven capacity to generate value for all its shareholders. With this, I am going to give the floor to Carolina Arango, so she can help us coordinate the Q&A sessions that you might have. I just wanted to say once again, and further than this space that we have for Q&A, all the team behind will be completely open and available after the call in order to attend any doubts, questions, or queries that you might have. Carolina Arango, please, the floor is yours. Of course. Thank you very much. First question that we have goes as follows. Good morning to everyone, and thank you for the presentation, and thank you for those good results despite the challenges. Wanted to know how the investment projects for Argos infrastructure is going. Well, thank you. Let me give the word to Mauricio Sama so he can give us an update on this project. Good morning. There is relevant investment here. Good morning to everyone. Thank you, Jorge Mario Velásquez. As you might already know, for some time we announced our interest in participating decisively in the water business. It is important to understand that the value chain of water, there is a series of sub-segments or sub-industry from which, after a rigorous analysis, we have decided to focus only on that value chain in this part of the reuse treatment or in desalination process. We made a thorough analysis supported by external advisors in order to identify which are the capacities and credentials that need to be built or with which we need to count with in order to be successful in this industry. And we discovered that Grupo Argos, with its sustainable focus and its capacities, long-term financial capacity or capital allocation or managing administrative capacities of the assets under its administration is important. It was also important for us to increase our technical operational capacities for this and after many deliberations with the board, we reached the conclusion that these capacities were very important to add and to include in M&A management. Right now we are participating in two projects that we expect that will come to a fruitful end in the short term. Our expectation is that for the end of this year, we can count with two new assets within the water platform that will complement our capacities and that also will bring an initial asset platform where we can manage water. This that we will allow with this first two actions that have been advancing. I cannot drill down into further detail because this is confidential for the moment, but they are reaching a final stage. This will allow us to focus, as we said at the beginning, in Chile in desalination or desaltation, mainly for copper exploitation and in Mexico for the reuse and treatment of industrial waters. Well, thank you, Mauricio. Let's move on to the upcoming question. Thank you, Jorge. Thank you, Mauricio. Javier Pérez from Credicorp asks, "Which are the estimated costs for the spin-off project? When are we going to be recognizing this?" Understanding that comparing this with the size of the transaction are small, but he would still like to know about this. Of course. Now, in the end, let me give the word to the team. But these are comparative expenses compared with the assessment transaction are reasonable, and this have to do with the expenses with financial and legal advisors, and there's some that are operational too. But let me give the word to Alejandro. Well, thank you. Thanks for the question. When we look at the complete structuring of the process, as it was mentioned, that sort of the low compared over the value of the transaction. Just for you to have an idea, the value of the total transaction that's recorded is about COP 111 trillion. When we look at all the associated costs that have to do with work we did with BAME, with the investment funds, with Deceval, with legal advisors, with fiscal advisors, with accounting and communication advisors, the estimated value that we have or the total cost for the transactions are close to COP 48 billion. So this means the total value of the transaction is equal to 0.4% of the total of the transaction. Okay. There's a question coming from Catherine. I see it here on the question list. Catherine Ortiz, first of all, I want to greet you. There's two elements, but I will be approaching them separately. First, sharing a bit more in detail in terms of the real estate business. If the land tax revision happens in the first quarter, the loss of this segment was more accelerated compared with the previous year. Let me give a few word to Mauricio Sama. So maybe I would suggest two things, a comparison between the P&L and cash, why both of those are important separately, but a little bit more about the business perspectives in terms of magnitudes. Thank you, Jorge, and thank you, Catherine, for the question. Yes, effectively, in the first quarter, we didn't have any writings in 2025 compared with others that we did have writings for in 2024. I guess you are looking at this adjusting to the deterioration that we had last year. As it was mentioned by Mario, currently, we are in a series of negotiations that will allow us to do the types of writings for the second quarter of 2025. Based on what we are seeing for the rest of the year, the rest of the three quarters, we could be expecting cash flow that might be similar to the one that we had last year. A little bit about the question you asked before, in terms, the difference between P&L and cash flow. Let's remember that in this business, we only see the revenues reflected once the writing has been done. Given that there were no documentation, as we could see numbers coming from previous businesses of those dividends, businesses such as Inválu, the activation of contractual bylaws or clauses, that if the buyers of that land sell for higher socioeconomic statuses or build more than was negotiated, a percentage of that corresponds to us. That is what we could see in the first quarter of the cash flow. But as I say, those writings happen, but we are still expecting at least to happen in the first quarters this year. Thank you, Mario. We have a third question coming from Catherine Ortiz, asking for orientation in respect with dividends and expected cash flow for this year of the non-listed companies. Listed companies are public, and obviously, these are known by everyone. Alejo, maybe will give a bit of insight in terms of what is the position in terms of Odinsa. Because this also links to a question that I see coming from Sebastian Gallego of how these acquisitions will be financed in the water vertical. Maybe if you could give us a bit of context of what is the policy that we are following under Odinsa, and maybe if you could speak a little bit about the real estate business. Of course, we are here. Basically, if you look at the dividend cash flows at a Grupo Argos level, these are mainly coming from the listed businesses which are Celsia, Cementos Argos, and Grupo Sura. For 2025, the total of flows that we have forecasted are around COP 1.05 trillion, COP 1.1 trillion. This total value, the non-listed companies or the non-listed buckets are basically three. Odinsa, and I will be going into more detail about that. We also have the coal business, and we have the urban development business. As a policy, and we have actually made this public, and this was something that was also discussed with the rating companies. The policy that we have for Odinsa is basically a growing company. So in our forecasts, we have not yet estimated Odinsa granting dividends, at least in the mid-term, we are not. Precisely, in order to have this flexibility and capacity of reinvesting. Large part of the cash that is being received, coming from the dividends of the businesses that come from the road and airport vertical, coming from the private capital funds. Or when we do a refinancing, for example, a capital structure refinancing, as it happened with El Dorado Airport. After this, maybe I could give the word to Pablo Arroyave, and he could drill down more into detail. Here, they received an important cash, and that cash, what they will do with this cash, is this is not being delivered to the shareholders, but this will be reinvested in the business. Part of this has to do with the water vertical. There are two other businesses. We have the coal business, the urban development business, and we have Pactia. In those three, we have estimated that we will be receiving, this year, dividends close to COP 75 billion. As you can see, the important thing for receiving cash flow reception in terms of dividends is Cementos Argos, Celsia, and decrease of Grupo Sura. We have an additional question, where we are being asked about the state of the share repurchase program, and if the company has plans of re-executing repurchases or executing more repurchases during the year. Let me give the word to Juan Esteban Mejía, so he could update us in this term. The short answer is, structurally speaking and directionally speaking, we keep this reacquisition program, not just from Grupo Argos, but also in the sister businesses, mainly in Cementos and Celsia. We have advanced up to 50% according to the authorized program. Fundamental here is that we keep seeing that despite the very positive evolution of the shares, both for Cementos as well as for Grupo, Celsia has recently done better. The values that the market today is offering do not reflect the value that we consider that is in the situation aspect of this business and the potential value generation that we have. Because of this, it is a very reasonable investment from a capital allocation optics. We keep on using this mechanism, in an active manner, transparent from a governance optic, or any government optics. We do this, far away from those windows or time frames where we are going to be revealing something to the market, or there is a certain specific privileged information that is going to be shared. We try not to use those time frames. Juan Esteban maybe can offer more detail on those figures. Of course, Jorge, moving on to the detail of the repurchase. Up to date, in the case of Grupo Argos, we reacquired more than 18 million shares. This is equal to a bit more than COP 250 billion, and this represents 50% of the repurchase program that was approved and signed. We still have another 50% to execute, and this will keep on happening during the year. If we look at the repurchase, including Celsia and Cementos Argos, we have COP 760 billion that have been reacquired. This is COP 420 billion for Cementos Argos and COP 91 billion for Celsia. Just to add additional data here, this program has been very powerful, from a value generation optics for the shareholders, because the prices at which the stocks are being sold are lower. The Grupo Argos shares have valued 200% since the beginning of the program. Cementos Argos 176%, and the Celsia shares, 76%. I do not know if we have any additional questions. For the moment, we do not have any additional questions in platform. Okay, well, if we do not have any additional questions, I want to thank you for being with us again. I want to say once again that the team is available to cover any other detail that you want to look at in a further detail. I want to again, repeat how satisfied we are with the results we have had this year, but also the opportunities that we see for the upcoming years, based on the strategic transformations that we have been carrying out, supported in the strength of our capital structure and also supported in the fundamentals of each one of our businesses. In the commitment that Grupo Argos is an actor that is not just responsible in the way of making business, but it is also a very attractive business partner for bringing in abundant capitals to the development of different types of platforms, such as energy, infrastructure, and professional materials for this continent. Thank you for your company, and we are completely open and available for any questions or queries that you might have. Thank you very much. Have a nice day. Translation booth starting now.